The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Balchem missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue was unchanged, and GAAP earnings per share stayed the same.
Gross margins dropped, operating margins contracted, and net margins increased.
Balchem logged revenue of $69.7 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $77.4 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $69.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The three earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS of $0.31 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.9%, 60 basis points worse than the prior-year quarter. Operating margin was 19.6%, 20 basis points worse than the prior-year quarter. Net margin was 13.6%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $79.4 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $324 million. The average EPS estimate is $1.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 320 members rating the stock outperform and six members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Balchem a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Balchem is hold, with an average price target of $35.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Balchem. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.